Crude Gains as IEA Sees Rising Demand; OPEC Keeps Quota - report
Brent crude rose to a five-day high after the International Energy Agency increased its oil demand forecast for 2013 and as OPEC ministers completed their meeting in Vienna to discuss production limits, Bloomberg reported.
Futures climbed as much as 1.2% in London, a third straight advance.
Global oil consumption will expand to 90.5 million barrels a day next year, more than previously forecast, amid signs of a rebound in Chinese demand, the IEA said in a report today. OPEC will maintain its output ceiling at 30 million barrels a day, Saudi Arabian Oil Minister Ali Al-Naimi said after the closed-door talks concluded.
Brent for January settlement added as much as US$1.27 to $109.28 a barrel on the London-based ICE Futures Europe exchange, the highest since Dec. 5. Futures were at $109.14 as of 1.53 p.m. local time. West Texas Intermediate for January delivery was at $86.23 a barrel, up 44 cents, in electronic trading on the New York Mercantile Exchange, leaving it $22.89 a barrel below Brent.
Oil in New York has technical support along an upward-sloping trend line on the daily chart, at about $85.73 a barrel today, according to data compiled by Bloomberg. A sustained drop below this line, which connects the intraday lows of June and November, will signal a so-called downside breakout, when losses tend to accelerate.
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